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I was looking at the Did you know section so it just stated that Morrowind was the only province to outlaw Necromancy. But you are correct about the banning not outlawing it. The mages guild has no say. But you figure they would with all they know about magic they would have some say in the ...

Ok I was under the assumption that the mages guild was the part of the government that handled the use of magic

I was reading through the did you know section and saw the only province necomancy was outlawed in was morrowind. I'm not certain that is correct. Necromancy was baned by the mages guild according to Oblivion lore. So wouldn't it the be outlawed were ever there was a mages guild?